Buy and hold on land, or build?

[Kevin Reid]

I've been posting a bit lately, and it may seem all over the place, but I'm just trying to explore all our options.

I've posted about buying a long or short term rental down where we want to retire. That is still on the table, but as I explore the area more I feel it has great potential in the future. There is a neighborhood that started to be developed, but I guess when the great recession hit it put some major brakes on it. So roads and utilities are already in place for the lots. That said, I can buy the lots fairly cheap, actually very cheap, even the water front lots are a good deal. When things pick back up in a few years I think it will rise sharply in price.

So lets say I went forward and got a lot for a nice retirement home later on. Would you just hold onto it, and build a home later. Or would you develop it now as a rental (there is a need in this area)? 

I guess a better question is does it pay to build a SFR as a rental if you get the land cheap? Or is it still better to find an existing property?